Wholetail options

[Stephen Brown]

If I'm going to wholetail a property, do I actually have to purchase the property myself, or can I simply put the property under contract, place the property on the market, with the seller's consent, and do a double close.

If the latter can be done, how is this presented to the seller, in a way that is more beneficial then simply listing it with a realtor. Are the only selling points that they can avoid closing costs and realtor fee's?

[Stephen Brown]

@Eric Benzenhoefer , yes I have wholetailed 6 Properties since May, and it's a GREAT way to move properties that I get under contract. 

You never have to actually purchase the property. The only benefit in purchasing the property, (if your going to wholetail it, and put no money into it) is that by purchasing it, it gives you more time to market the property. 

But if it is a good deal you can simply place the property under contract....(make sure on your contract you add a clause stating the seller gives you authority to list the property on the MLS.) Find the buyer from the MLS and close on the property....in one of two ways:

If I'm making 15K+ on the property, I'll pay the additional fee's of doing a double close, (which will keep the seller from knowing how much money i'm making in the transaction.) However if the margins are under 10K I will typically just do an assignment, which has fewer closing costs.